The name 'Salem' appears to have been derived from Sela or Shalya by which the term refers to the country around the hills, as in the inscriptions. Local tradition claims Salem as the birth place of Tamil poetess Avvaiyar.

The Centurion Municipality was declared as the SALEM CITY MUNICIPAL CORPORATION from 1.6.1994. The Salem City Municipal Council celebrated its Centenary in 1966. Fittingly the Municipality was upgraded into a special grade Municipality with effect from 1.4.79. Salem City Municipal Limits were further extended by the inclusion of Suramangalam Municipality, Jarikondalampatty Town Panchayat, Kannankurichi Town Panchayat and 21 other Village